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Toshiba now willing to sell majority of memory business

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Toshiba now willing to sell majority of memory business
Michael McManus, DIGITIMES, Taipei [Wednesday 15 February 2017]

Toshiba share prices continued to drop on Wednesday as the fallout from the write off of its nuclear energy business in the US continues and the company has now indicated that it is willing to sell off a majority of its memory business. The company has lost about US$8 billion in market cap since December.

Shigenori Shiga will step down as chairman of the company.

CNBC is reporting that Toshiba announced it would consider selling a majority stake in its memory business.

If the memory unit is sold, Bernstein Research’s Mark Newman believes that SK Hynix would make the most sense strategically for the memory industry as it would lead to industry consolidation and better long-term growth possibilities. Newman added that a losing scenario for memory makers would be if China stepped in as a bidder through the Tsinghua Unigroup. Although that would improve China’s technology and would likely lead to a capex war with Samsung.

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